Have you ever heard the word Proptech? Sure you have. It’s short for Property Tech. An attempt to digitise how properties are sold, bought and managed.
Proptech is the alignment between technology and real estate. The first set of property tech companies were marketplaces which introduced a way for people to display their property online. As with many other industries, the first set of digital transformation projects are often marketplaces. However, this industry is huge and includes solutions such as a property search platform like Zillow, and property development tools like Estabild.
Estabild is a secure, cloud-based software for construction project owners, lenders and investors to ensure a predictable outcome and profitability. Proptech also expands to 2D/3D architecture and design solutions like Enscape. Enscape is a commercial real-time rendering and virtual reality plugin. It is mainly used in the architecture, engineering, and construction fields.
Proptech is awesome isn’t it?
Proptech also includes facility management tools and CRM for commercial real estate agents to manage their clients. It’s a whole world of making the business of real estate more efficient.
The impact of Proptech on traditional real estate practice is Convenience, profitability, customer experience, risk management and data analytics.
Technology is an enabler. As with any other attempt at digital transformation, technology creates convenience. Now people can go to a marketplace to buy or sell a very convenient house.
With the advent of technology, real estate stakeholders can also use data to come up with accurate insights on pricing, home-value trends, and even potential risks and failures. There’s no need to fail at real estate when we can use technology to increase the chances of success. This speaks to both data analytics and risk management. Real estate investment companies can leverage these technologies to assess property valuations, rental yields, and potential returns on investment. As well, one of the key effects of PropTech on real estate investment is the enhanced capability to collect and analyse extensive data sets. Real estate sales, marketing, and investment companies can utilise advanced analytics tools to make data-driven decisions.
By employing predictive models, market trends can be identified, allowing investors to make informed decisions about property purchases, sales, and portfolio diversification.
Lastly, Profitability. PropTech has revolutionized real estate marketing, significantly enhancing profitability for investors and sellers. Virtual reality (VR) and augmented reality (AR) technologies enable potential buyers to tour properties remotely, reducing the time and effort required for physical visits.
Real estate marketing firms can now offer immersive experiences through 3D tours and interactive floor plans, which boost engagement and attract a larger audience. These innovations have transformed sales strategies, allowing investors to access a global market and make data-driven decisions tailored to specific demographic targets. Consequently, these technological advancements have led to increased revenue and profitability for all stakeholders involved.
Real Estate Tech startups in Africa that are revolutionising the Industry
- HouseMe – South Africa
HouseME is a digital platform that connects dream tenants to great landlords. They facilitate mutually beneficial relationships that result in fair prices, ongoing support, transparency and reduced risk. For only 2.5%, HouseME is the new, easy and smart way to rent. We want to live in a world where good people get the best out of life. So they’re building it, one home at a time.
For too long, residential rental has been a broken system. HouseME has focused on rewriting the rules, solving common issues experienced by both residents and landlords, and redefining the landlord/tenant relationship, offering the platform and expertise for only 2.5%.
- Lyve – Egypt
Lyve is a community management platform and private social network that connects residents, real estate developers, and facility management all in a single, unified, extensible solution.
- Estate Intel
They’re building the starting point for the best African real estate decisions.
Our products help institutional investors, governments, developers, contractors and individuals understand the real estate market and execute property investments with conviction.
- Spleet
Spleet is a complete rental management solution for landlords and tenants in Africa. List an apartment for free, rent an apartment and pay flexibly, verify your tenants and collect rent automatically with our rental management tools.
- Venco
Venco is an all-in-one community management solution for multi-unit residential and commercial communities. We provide best-in-class software for property managers, owners, and tenants in all types of communities.
Conclusion
We at Nubia Capital are interested in real products that solve the challenges of real estate in Africa. Please email us.
